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STIMULATING SMALL BUSINESS GROWTHProgress Report on the Goldman Sachs 10,000 Small Businesses UK ProgrammeApril 2013
DESIGN IMPACT LEARNINGCONTEXT
Foreword by The Rt Hon the Lord Heseltine CHNo reminder is needed that developed economies the world over, including the UK, face unprecedented challenges. Foremost among these is the need to restore sustained growth in an environment of constrained resources, at a time when markets are more global and competition – for customers, skills, resources – grows more intense by the day. At stake is our ability to sustain and raise the standard of living of current and future generations.
Enabling our most ambitious, innovative and productive small businesses to grow in every
part of the UK is a crucial piece of this puzzle. In every thriving economy small businesses
are key drivers of job creation and growth and it is from among today’s small businesses that
tomorrow’s national and global players will emerge.
My own experience of starting and growing a small business, albeit in different economic
circumstances, and my subsequent career has left me both with an enduring admiration for
entrepreneurs and an understanding of the extraordinary challenges they face as they seek to
grow their businesses.
The UK has every reason to be optimistic. World leading businesses and industries have
been and continue to be built here in the UK, and they are to be found in every region and
in every sector. But we cannot be complacent, and entrenched models and mindsets may
not be adequate to the task. My October 2012 report to the government, No Stone Unturned
in Pursuit of Growth, set out my vision of how we can build on our strengths – and address
longstanding issues – to enable the UK economy to thrive in both the short and the long term.
I emphasise in particular that a necessary condition for achieving our potential as a country is
unlocking the growth of all, not just some, of our local and regional economies.
Providing effective small business support should be a keystone of this effort and will require
new ways of working together across public and private sectors and an openness to innovative
ideas and models. Crucially, in supporting small businesses we should not start from a blank
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 2
DESIGN IMPACT LEARNINGCONTEXT
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 3
slate but should tap into and where necessary catalyse and link together the local assets,
infrastructures and networks that are already serving small businesses.
The Goldman Sachs 10,000 Small Businesses UK programme is a very welcome and timely
practical contribution to supporting small business growth, both in terms of what it does and
how it does it:
• Itfocusesitsinvestmentwhereitcanmakeadifference,byprovidingapracticalbusiness
and management education to ensure that entrepreneurs preparing their businesses for
growth are familiar with best practice across every aspect of their business.
• Itadoptsaninnovativeapproach,bringingsmallbusinessleaderstogethertocreate
entrepreneurial communities whose participants share experience and insight and support
one another.
• Itisacross-sectoralpartnershipthatdrawsextensivelyontheskills,resourcesand
initiative of local experts, notably universities and business schools, with each partner
bringing its unique assets to the common goal of supporting small business growth. It
complements and develops the business ecosystems in four of our great cities and the
surrounding regions.
The early evidence on the programme’s impact presented in this Progress Report suggests
that this approach is making a real difference to participating businesses and therefore
to local economies across the country. Further, by enhancing small business ecosystems
10,000 Small Businesses UK provides new opportunities for complementary investments
designed to stimulate small business growth. I hope that others will be inspired by the
experience of this partnership to bring their unique assets to support this crucial agenda.
The Rt Hon the Lord Heseltine CH
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 4
DESIGN IMPACT LEARNINGCONTEXT
Executive SummaryThis Progress Report has been produced by the five university partners that lead the delivery of the Goldman Sachs 10,000 Small Businesses UK programme. It describes the programme’s context and rationale, explains how it is designed, sets out early evidence about its impact and draws some general lessons from the experience of delivering the programme.
What is 10,000 Small Businesses?
10,000 Small Businesses UK is one of several programmes
developed and supported by Goldman Sachs and the Goldman
Sachs Foundation focused on accelerating the growth of high
potential small businesses to create jobs and grow economies.
Building on the success of the 10,000 Women initiative, which
provides a business education to women entrepreneurs in
emerging economies, 10,000 Small Businesses launched in
the United States in 2009. This programme, developed by the
F.W. Olin Graduate School of Business at Babson College, is
delivered through community college partners to underserved
entrepreneurs in cities across the United States.
In the UK 10,000 Small Businesses is a partnership between Goldman Sachs, the Goldman
Sachs Foundation and the following leading universities:
• Saïd Business School, University of Oxford – national partner;
• Aston Business School – Midlands programme;
• Leeds University Business School – Yorkshire programme;
• Manchester Metropolitan University Business School – North West programme; and
• UCL – London programme.
The UK programme has a broad regional coverage, including many areas of relative economic
disadvantage. It was first piloted in Yorkshire in 2010, followed by expansion to North West
England, the Midlands and London. As of April 2013 almost 500 small business leaders across
the country have participated, and approximately 250 new participants join the programme
Through its investment in these small business leaders 10,000 Small Businesses aims to stimulate employment creation and economic growth.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 5
DESIGN IMPACT LEARNINGCONTEXT
each year. Through its investment in these small business leaders 10,000 Small Businesses
aims to stimulate employment creation and economic growth.
Why small businesses matter
As well as being the major source of job creation in developed economies, small businesses
are critical to driving economic growth through innovation and market expansion. There is
growing evidence of the economic significance of the small proportion of businesses that
exhibit high growth, which are to be found in all regions of the country and in all industry
sectors. The economic impact of increasing the population of high growth businesses, even
marginally, would be significant and the opportunity to do so exists in all regions of the UK.
The design of 10,000 Small Businesses UK
The programme is designed specifically for the leaders of established small businesses who have the
ambition and the potential to generate substantial growth in their enterprises. Participation is by
competitive entry and is fully funded by the Goldman Sachs Foundation for successful candidates.
Participants benefit from a full package of support with a strong focus on structured peer
learning and the creation of communities of entrepreneurs.
Each participant undertakes the programme as a member of a cohort of 25 to 30
entrepreneurs. The core of the programme, undertaken by all participants, is a cycle
of 12 modules each focused on a different aspect of business growth. The modules
together constitute a coherent and comprehensive curriculum designed specifically for
10,000 Small Businesses UK. Over the course of the modules every participant develops a
Business Growth Plan to guide the growth of their business beyond the programme.
Thecoreprogrammeissupplementedbytopicalworkshops,legalclinics,one-to-onementoring
and other support tailored to participants’ needs. The emphasis throughout is on learning that
is practically applicable in participants’ businesses and on creating an environment of trust
to encourage the intensive exchange of ideas and experience between participants. Over time,
a unique national community of entrepreneurs has developed that is focused on growth and
unified by the shared experience of having participated in 10,000 Small Businesses UK.
Programme impact – early evidence
The aim of the 10,000 Small Businesses UK programme is ultimately to help generate business
growth and employment creation that may not have otherwise happened.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 6
DESIGN IMPACT LEARNINGCONTEXT
1 BIS Small Business Survey, 2012.
A rigorous and independent process has been established to
monitor changes in participants’ businesses for an extended
period after they complete the programme. Data collected from this
process indicates that the programme is leading to an observable
impact on jobs and turnover. For example:
• Alargemajority–77%–ofparticipantsreportintheir
initial follow up survey that they had increased the
number of people they employed in the previous
12 months.
• Onaverageparticipantsreportedanannualincreaseof
23%intheirnetemploymentoverthebaselineposition.
• Twothirds–66%–ofparticipantsindicatedthat,
compared to the same period in the previous 12 months,
their turnover had increased.
• Onaverageparticipantsreportedanannualincreaseof
16%intheirannualturnoveroverthebaselineposition.
Almostall(92%)participantsreportthattheyarenowmore
confident in their ability successfully to grow their business than
they were before participating in 10,000 Small Businesses UK.
The opportunity to work closely with other entrepreneurs, to
provide mutual support to others with similar aspirations and to
joinadedicatedcommunityoflike-mindedentrepreneursseems
to serve to increase confidence, morale and resilience.
What the partnership is learning
The process of developing and delivering the
10,000 Small Businesses UK programme and monitoring its
impact on participants is enabling the programme partners to
understand how it is creating value on a number of different
levels. A key outcome from the programme is how powerful
andself-sustainingentrepreneurialcommunitiescanbeand
the importance of creating the conditions in which these can
form and flourish. The Report concludes with a discussion of
some of the features of 10,000 Small Businesses UK which are
proving particularly impactful for participants.
Revenue creation66%ofparticipantsgrowingrevenuevs.35%
of UK small businesses. 1
PARTICIPANTS UK SMALL BUSINESSES
35%
66%
Job creation77%ofparticipantscreatingnetnewjobsvs.
24%ofUKsmallbusinesses. 1
PARTICIPANTS UK SMALL BUSINESSES
24%
77%
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 7
DESIGN IMPACT LEARNINGCONTEXT
2 Bravo-Biosca, A. (2010) Growth Dynamics: Exploring business growth and contraction in Europe and the US, NESTA Research report: November 2010.
3 Anyadike-Danes, M; Hart, M and Du, J (2013) Firm Dynamics and Job Creation in the UK – Taking Stock and Developing New Perspectives, Enterprise Research Centre White Paper, April 2013.
SECTION 1
Why Small Businesses Matter, and the Case for Supporting ThemAs well as being the major source of job creation in developed economies, small businesses are critical to driving economic growth through innovation and market expansion. 2 Economies thrive when their most ambitious, innovative and productive small businesses are able to grow.
In every economy the overwhelming majority of small businesses do not grow and these
‘static’ businesses play a crucial role in delivering services and maintaining livelihoods.
But there is growing evidence of the economic significance
of the much smaller proportion of businesses that exhibit
high growth.
This is perhaps most evident in high growth businesses’
disproportionate contribution to job creation. 3 For example,
in the UK high growth businesses 4 representing one per
cent of the total business population generated one million
jobs,or23%ofthetotal,between2007and2010. 5 Less
evidently, growing small businesses are also critical drivers
of long term productivity growth. They bring innovative
products and processes to the market, and disseminate
these innovations as they expand their markets regionally,
nationally and internationally.
The international comparative evidence on business growth
shows that European countries have on average a lower share
of high growth businesses than the US.6 Europe, and in particular the UK, has a much larger
share of static businesses. These differences have been shown to be significant in explaining
variations in productivity across the economies.7
It is crucial that small businesses, whatever their specific context, are able to take full advantage of the ecosystem around them and to play a pro-active role in fuelling their own growth.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 8
DESIGN IMPACT LEARNINGCONTEXT
4 We follow the OECD methodology and define a high-growth firm as any firm with a minimum of 10 employees at the beginning of the period that achieves an average annualised employment growth greater than 20 per cent over a three year period.
5 Based on analysis for the period 2007-2010 of ONS data contained in Anyadike-Danes et al., (2013) op cit. Note: these five categories of firms are mutually exclusive and sum to the population of job creating businesses in the UK economy.
Within the UK, recent analysis shows the dominant position
of parts of London and the South East in the distribution of
high growth businesses but also highlights concentrations of
these businesses in Edinburgh, Glasgow, Leeds, Manchester,
Cardiff and Bristol. There is no particular sector bias among
high growth businesses. High growth businesses can be found
in every region and in every industry. 8
Overall, the evidence suggests that the economic impact of
increasing the population of high growth businesses, even
marginally, would be significant and that the opportunity to
do so exists in all regions of the UK.
But what determines the likelihood of a firm achieving
fast growth and what does this tell us about the optimal
design of interventions that aim to accelerate small business
growth? The vast majority of research on small business
growth has focused on explaining the importance of business
age, sector and initial size and on specific barriers which can
limit growth (for example on access to finance and difficulties
inexporting).Relativelylimitedconsiderationhasbeengiven
to the role of leadership and the aspirations and capabilities
of management.
Clearly no intervention on its own can transform the
growth prospects of UK small businesses. A robust small
business support ecosystem will vary from region to region,
leveraging local assets and responding to specific needs and
opportunities, and will involve many players and evolving
interactions among them – including local, regional and
national administrative bodies; capital providers; professional
services firms; industry trade groups; academic institutions;
and large corporates seeking to optimise their supply chains.
Peer support among entrepreneurs themselves represents an
opportunity and an underexploited resource. It is crucial that
small businesses, whatever their specific context, are able to
take full advantage of the ecosystem around them and to play
apro-activeroleinfuellingtheirowngrowth.
In the UK high growth businesses representing one per cent of the total business population generated one million jobs, or 23% of the total, between 2007 and 2010. 4
PROPORTION OF JOB CREATING FIRMS
PROPORTION OF TOTAL JOB CREATION
MICRO-ENTERPRISES – NON-HIGH-GROWTH FIRMS
15%27%
SMALL AND LARGE FIRMS
22%5%
YOUNG FIRMS (LESS THAN TWO YEARS OLD)
5%6%
HIGH-GROWTH FIRMS
23%1%
NEW FIRMS
61% 35%
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 9
DESIGN IMPACT LEARNINGCONTEXT
6 Bravo-Biosca, A (2010), op cit.
7 Bravo-Biosca, A (2010) op cit.
8 Anyadike-Danes, M; Hart, M and Bonner, K (2013) Exploring the incidence and spatial distribution of HGFs in the UK and their contribution to job creation, NESTA Working Paper No. 13/05.
The 10,000 Small Businesses UK programme aims to contribute to the development of the UK’s
small business support ecosystem in particular through:
• Focusingonthedevelopmentofsmallbusinesses’entrepreneurialandmanagerial
capabilities;
• Facilitatingthedevelopmentofpeer-to-peersupportnetworksofsmallbusinesseswith
high growth potential; and
• Developingapartnershipmodelofsmallbusinesssupportprovisionbetweenthecorporate
and higher education sector that also draws on and complements existing local assets,
infrastructures and networks.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 10
DESIGN IMPACT LEARNINGCONTEXT
SECTION 2
The Design of 10,000 Small Businesses UK10,000 Small Businesses UK has been designed to accelerate the growth of high potential small businesses. Participants benefit from a coherent and comprehensive package of support with a strong focus on structured peer learning and the creation of communities of entrepreneurs.
Programme partners
10,000 Small Businesses UK is a partnership between
Goldman Sachs, the Goldman Sachs Foundation and five
leading UK universities. Each university partner brings a
combination of recognised academic expertise on topics
relating to business growth and practical experience in
developing entrepreneurs’ management and leadership skills.
Each is also an important player in its respective business
ecosystem, and is able to draw on a uniquely wide range of
skills and resources for the benefit of programme participants.
While four of the five university partners have responsibility for
delivery in a specific region, they work closely on programme
development together. Saïd Business School, the programme’s national coordinating partner, works
closely with the regional delivery partners to ensure consistent delivery and to facilitate knowledge
sharing. The programme is recognisably the same from region to region and from cohort to cohort, but
each partner enjoys the flexibility to introduce innovations within the overall structure. The most effective
of these innovations are shared quickly across the partnership through formal and informal transmission
mechanisms. The result is that the core curriculum and delivery model evolve organically over time and
reflect a growing body of experience about how to deliver effective support to entrepreneurs.
Participant selection
Because 10,000 Small Businesses UK aims to support small businesses with high growth
potential, and given the focus on peer learning and the building of entrepreneurial
The programme evolves organically over time and reflects a growing body of experience about how to deliver effective support to entrepreneurs.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 11
DESIGN IMPACT LEARNINGCONTEXT
communities, the selection process to participate in the
programme is necessarily rigorous.
Recruitment is managed regionally and is targeted at leaders
of established small businesses and social enterprises with
typically between five and 40 employees. Many participants
are founder CEOs of their businesses and all exercise
considerable direct control over every aspect of their business.
Beyond these basic requirements, the selection process aims
to identify participants who have the potential to generate
significant growth with the programme’s support. Information
from application forms, applicant interviews and background
research is used to assess:
• Theentrepreneur’sandthebusiness’strackrecord;
• Theentrepreneur’sambitionfortheirbusiness;
• Thenatureandscaleofthebusiness’sgrowthopportunity;and
• Theentrepreneur’spotentialtobenefitfromtheprogrammeandtocontributetoother
participants’ development.
As illustrated in Section 1, only a very small proportion of small businesses exhibit high
growth. Similarly, the combination of characteristics sought in 10,000 Small Businesses UK
participants is relatively uncommon among the broader small business population. But by
bringing together entrepreneurs who share these characteristics the selection process provides
a strong foundation for trust between participants right from the start.
I’m now dealing with participants from outside of my particular cohort, businesses that have been vetted by the 10,000 Small Businesses network, people that have been through the same application process, have been successful on the course and understand my goals and objectives.”
North West participant
There are no restrictions on participation in terms of business sector or the entrepreneur’s
background, with the result that each cohort of participants is highly diverse in its makeup.
The key commonality is that all participants share the desire and the potential to grow their
“
Each participant cohort is highly diverse in its makeup, though all participants share the desire and the potential to grow their businesses.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 12
DESIGN IMPACT LEARNINGCONTEXT
9 A prescriptive definition of “social enterprise” is not used but in general it is required that participants derive the bulk of their revenue from trading activities rather than from grant funding.
businesses. A notable example of this diversity, and one which is unusual if not unique in the
businesssupportspace,isthatmission-drivenbusinessesandsocialenterprisesparticipate
intheprogrammealongsidemorepurelycommercially-drivensmallbusinesses.Thisdesign
feature is based on bespoke research which found that these firms face many of the same
growth challenges as other small businesses. 9
Programme structure and content
Onceselected,participantsbenefitfromanintensiveandwide-rangingprogrammeofsupport.
The content covered in the core programme of 12 topic-centred compulsory modules is wide-ranging but consistently underpinned by the theme of business growth.
PRESENTING AND PITCHING YOUR BUSINESS
BUSINESS GROWTH PLAN
PEER-TO-PEER LEARNING AND SUPPORT
LEGAL CLINICS
IDENTIFYING AND MAXIMISING OPPORTUNITIES
SUSTAINABLE GROWTH
CHALLENGING THE STATUS QUO
FINANCIAL MANAGEMENT AND GROWTH
PREPARING FOR CAPITAL
TOPICAL WORKSHOPS
ACCESS TO NEW NETWORKS
INTERNATIONALISATION
You and Your Business 1a/b
Marketing5
Money and Metrics3
Good Business7
Growth and Opportunities2
Finance For Growth9
It’s The People
You Are the Leader
Strategic Growth Through Operations
Putting It All Together
4
6
8
10a/b
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 13
DESIGN IMPACT LEARNINGCONTEXT
Thecontentcoveredinthecoreprogrammeof12topic-centredmodulesiswide-rangingbut
consistently underpinned by the theme of business growth. The comprehensive nature of
this core programme means that participants can both work to develop business skills which
they know have been less well developed over the course of their entrepreneurial career, and
identify weaknesses and strengths of which they were not aware.
Threaded throughout the modules are horizontal themes and
activities. The most important of these is the Business Growth
Plan which every participant develops and refines iteratively
from module to module. This Plan charts the participant’s
medium to long term growth strategy and the action plan to
implement it. It can be adapted for use in capital raising and
building consensus within management teams on strategic
decisions. The consistent focus on the Business Growth Plan
ensures that the programme content always ties back to
practical action and change in participants’ businesses.
The modules take place fortnightly over three to four
months. This schedule strikes a balance between immersing
participants in an intensive learning environment outside
their businesses, and providing opportunities to test out
ideas inspired by the modules in their businesses. The core
programme is sufficiently short and intensive to generate energy and momentum, and long
enoughtoenableparticipantstodeveloprobust,well-testedgrowthstrategiesthatendure
beyond their involvement in the programme. Crucially, the duration of the programme also
enables participants to build a strong support and enduring network within their cohort.
For me I found the most valuable part was taking yourself out of the business, and looking from the outside in. It gives you a much greater sense of perspective, and you are able to criticise your own business with like-minded people.”
Yorkshire participant
Participants also benefit from the input of practitioners from the wider regional business
ecosystem. Each is assigned an experienced business advisor who helps them to develop
their Business Growth Plans and to translate module content into practical action. The core
programme is further supplemented by topical business workshops, legal clinics and other
support services tailored to participants’ needs.
“
The learning environment is designed to encourage an intensive and productive exchange of knowledge between the participating entrepreneurs that catalyses change in them and their businesses.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 14
DESIGN IMPACT LEARNINGCONTEXT
Learning environment
The learning environment in which 10,000 Small Businesses
UK participants are immersed is different from a typical MBA
programme, perhaps its closest equivalent. All participants are
successful practising entrepreneurs who return to their businesses
after each module. Each brings experience and networks which
are valuable to other participants. The learning environment is
designed to encourage an intensive and productive exchange
of knowledge between the participating entrepreneurs that
catalyses change in them and their businesses.
Facilitated peer learning is an approach used throughout
the programme and creating a strong basis of trust between
participants is a necessary condition for this method to work
effectively. Each cohort is divided at the outset into Growth Groups
of five participants each and these meet throughout the core
programme to discuss, deliberate and form strategies around real
business issues and collaborate on evolving Business Growth Plans.
You develop your Business Growth Plan with the 25 other participants, but especially with the core Growth Group of the five of you. They know everything that’s in my plan, they’ve helped me develop it.”
Yorkshire participant
Over time, participants become increasingly familiar with each
other’s businesses and able and willing to add value to each other,
both within their Growth Groups and in the wider cohort. This
value takes many forms – shared experience, direct business with
one another, strategic partnerships or mergers, introductions
to new clients and suppliers, mentoring relationships or
simply increased morale or confidence. Each cohort begins the
programme a disconnected group of entrepreneurs, operating in
the same region. By the end they are part of an interconnected
network that produces a multitude of productive relationships
and connections within the cohort and beyond.
“
GrowthGrowth
Enhanced confi dence
Shared knowledge and best practi
cesCommunity formation
Trusted learning environment
Practical content, dynamic d
elive
ry
RIGOROUS RECRUITMENT
AND SELECTION
10,000 SMALL BUSINESSES COHORT
REGIONAL SMALL BUSINESS POPULATION
SMALL BUSINESS WITH HIGH GROWTH POTENTIAL
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 15
* Data for the UK is taken from the ONS Business Structure Database (BSD) and the BIS Small Business Survey (2012).
Participant Diversity
Business ageMost participants’ businesses are
under 10 years old
1-5 YEARS
30 YEARS AND OVER
20-30 YEARS
10-20 YEARS
6-10 YEARS
6%9%
31%32%
22%
Participant ageBroad range of ages represented, most
participants are over 40 years of age
20-30 YEARS
60-70 YEARS
50-60 YEARS
40-50 YEARS
30-40 YEARS
1%
17%
34%
7%
41%
Gender diversity32%ofparticipantsarewomenentrepreneurs
vs.19%ofwomen-ledsmallbusinessesacross
the UK *
PARTICIPANTS ARE WOMEN ENTREPRENEURS
UK WOMEN-LED SMALL BUSINESSES
32%
19%
Business sectorsSectoralbreakdown(basedonSICcodes)of10,000 Small Businesses
participants
Social enterprises 13%ofparticipantsaresocialenterprises
ALL OTHER CATEGORIES
WHOLESALE & RETAIL TRADE
PROFESSIONAL SCIENTIFIC, TECHNICAL
INFORMATION & COMMUNICATION
ADMINISTRATIVE & SUPPORT SERVICES
MANUFACTURING
17%
16%
14%
14%
9%
30%
SMALL BUSINESS PARTICIPANTS
SOCIAL ENTERPRISE PARTICIPANTS
87%
13%
YORKSHIRE & HUMBERSIDE
Leeds University Business School
YORKSHIRE & HUMBERSIDE
NORTH WEST
Manchester Metropolitan University Business School
NORTH WEST
MIDLANDS
Aston Business School
MIDLANDS
LONDON & SOUTH EAST
UCL
LONDON & SOUTH EAST
Geography
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 16
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 17
* Data for the UK is taken from the ONS Business Structure Database (BSD) and the BIS Small Business Survey (2012).
Programme Impact *
Job creation77%ofparticipantscreatingnet
newjobsvs.24%ofUKsmall
businesses
PARTICIPANTS UK SMALL BUSINESSES
24%
77%
Revenue creation66%ofparticipantsgrowing
revenuesvs.35%ofUKsmall
businesses
PARTICIPANTS UK SMALL BUSINESSES
35%
66%
Employment growth rateAverage net employment growth
rateofparticipants23%vs.-1%
for UK small businesses
PARTICIPANTS UK SMALL BUSINESSES
-1%
23%
Revenue growth rateAverage growth rate of
participantrevenues16%vs.
-9%forUKsmallbusinesses
PARTICIPANTS UK SMALL BUSINESSES
-9%
16%
Strategic changeParticipation in the programme is catalysing major strategic changes in participating
businesses
INTRODUCED NEW INTERNAL PROCESSES
USING FINANCIAL DATA MORE TO DRIVE BUSINESS DECISIONS
FOUND NEW SUPPLIERS THROUGH THE PROGRAMME
INCREASED TRAINING OPPORTUNITIES FOR STAFF
HAVE IMPROVED QUALITY OF AN EXISTING PRODUCT/SERVICE
MORE CONFIDENT IN THEIR ABILITY TO GROW THEIR BUSINESS
92% 83% 81% 43% 64%52%
Capital for growthThe programme is helping participants to
evaluate and access different forms of capital
for growth
67%84% 67%
HAVE ENHANCED UNDERSTANDING OF THE EXTERNAL FINANCE OPTIONS AVAILABLE
ARE BETTER ABLE TO SECURE EXTERNAL FINANCE
WILL TRY TO OBTAIN FINANCE TO GROW THEIR BUSINESS IN THE NEXT 12 MONTHS
DESIGN IMPACT LEARNINGCONTEXT
Note on Measurement Methodology10,000 Small Businesses UK participant data is
collected for monitoring and evaluation (M&E)
purposes by BMG Research, an independent
market research agency based in Birmingham.
Standardised interviews are conducted with
participants when they begin the programme
(the “baseline” survey) and then approximately 6
months and 18 months after their completion of
the core programme.
The baseline survey is intended to determine
participants’ situation prior to entering the
programme, in terms of turnover, numbers
employed, business management, business planning,
access to finance, networking and business
challenges. Subsequent interviews enable changes
in the same variables to be tracked over time.
Participant interviews are mainly conducted
through a CATI (Computer Assisted Telephone
Interviewing) methodology, which has proven to
deliver the highest response rates and best data
quality, with a minority preferring to complete the
survey online.
Other than the first cohorts who took part in an
online survey, there have been three waves of
interviewing. Each wave consisted of baseline and
post-6 month interviews, with the March 2013
wave including the first post-18 month interviews.
Response rates are extremely high for a survey of
this type:
• First wave (March – April 2012). seven cohorts
were interviewed (four baseline, three post-6
month). 171 interviews achieved at an overall
response rate of 96% (97% for baseline, 93% for
post-6 month)
• Second wave (September – October 2012). seven
cohorts were interviewed (four baseline, three post-
6 month). 181 interviews achieved at an overall
response rate of 96% (97% for baseline, 94% for
post-6 month)
• Third wave (March 2013, still ongoing). seven cohorts
were interviewed (four post-6 month, three post-18
month). 152 interviews achieved as 25th March, at
an overall response rate of 86% (87% for post-6 month,
84% for post-18 month)
Data shown in this report is based on 233
participants who completed both baseline and
post-6 month surveys as at 25th March 2013.
In five cases the business leader indicated that
their current business was not the business for
which they had completed a Business Growth
Plan, and although they were still involved in that
business they were unable to provide employment
and turnover at the time of the survey. They
were, however, able to respond to all the other
questions in the survey. Impact changes reported
are comparisons between baseline and post-6
month or (where specified) post-18 month survey
figures. Please note that in the early baselines
figures for turnover were based on businesses’
financial year end rather than the preceding
12 months. Therefore, because year end differs
between businesses, the figures shown for turnover
change between the baseline and later surveys are
equivalent to the annual change in turnover.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 18
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 19
DESIGN IMPACT LEARNINGCONTEXT
SECTION 3
Early Evidence on Programme Impact10,000 Small Businesses is committed to a rigorous and independent process of monitoring changes in participants’ businesses for an extended period after they complete the programme. 10 To date the results from this process are providing growing evidence of the range of ways 10,000 Small Businesses UK is generating impact.
The aim of the 10,000 Small Businesses UK programme is ultimately to help generate
employment and economic growth that may not have otherwise happened. While this cannot
be measured directly (because the counterfactual of what would have happened without
theprogrammeisnotobservable),follow-upsurveyswithparticipantscapturearangeof
quantitative and qualitative data on the changes that are taking place in their businesses as
well as in the behaviour and attitudes of the leaders who are driving these changes. In broad
terms the data collected from participants to date indicate that 10,000 Small Businesses UK is,
on average, producing significant changes in a range of business behaviours and is leading to
an observable impact on jobs and turnover.
The following summary is based primarily on the responses from the 233 participants who
respondedtotheinitialfollow-upsurveyandprovidesomesnapshotsofthechangesthat
are taking place among participants and their businesses following their completion of the
programme.Thereareafurther55participantswhohavenowundertakenthesecondfollow-
up survey whose outcomes will be summarised separately.
Growth – jobs and turnover
Changes in participants’ knowledge, confidence, networks and business practices matter
economically if they feed through ultimately into job creation and growth. Evidence from
participant tracking to date is very encouraging in this respect.
Alargemajority–77%–ofthe233participantsacrossthefourdeliveryregionswho
undertooktheinitialfollow-upsurveyreportedthattheyhadincreasedthenumberofpeople
10 These surveys are undertaken by BMG Research – an independent market research company (see panel for details of the methodology).
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 20
DESIGN IMPACT LEARNINGCONTEXT
11 Based on special analysis by BMG Research from the BIS Small Business Survey (2012) – fieldwork was undertaken between June and September 2012. We were interested in looking at the responses of a group of small businesses that closely matched the profile of the 10,000 Small Businesses UK participants – that is, businesses employing between five and 40 people and had been trading for at least three years. The question in the BIS Small Business Survey is not identical to that used here as it used the phrase “more or less remained the same” compared to “remained the same” in this survey.
they employed in the previous 12 months, with a further
13%reportingnochange.Further,two-thirds–66%–ofthe
participants indicated that, compared to the same period
in the previous 12 months, their turnover had increased
withafurther21%reportingthatithadstayedthesame.
Importantly, far from coming at the expense of sustainability
this growth appears to be coupled with enhanced profitability
–53%ofparticipantshadincreasedtheunderlying
profitabilityofthebusinesswhileathird(34%)reportedthat
it had remained unchanged.
The performance of the 10,000 Small Businesses UK
participants compares very favourably to the wider
population of small business employers in the UK, of which
only24%reportedin2012thattheyhadmoreemployees
than 12 months previously. 11Similarly,only35%ofsmall
business employers reported that their turnover was greater
than 12 months previously.
Looking at the actual numbers participants in the initial
follow-upsurveyreportedanincreaseof16%inturnoverover
theirbaselineposition(annualised)–whichtotaled£266m
(£1.17maverage;£650kmedian).
Intermsofjobstheseparticipantshadatotalof3,900full-
timeequivalentjobs(FTEs)whentheybegantheprogramme
(17jobsaverage;11jobsmedian).Overall,theyarereporting
anincreaseinemploymentoverbaselineof23%todate.
The most recent data we have from official ONS sources
indicates that average employment growth rates for
comparable small businesses in the UK (i.e., those with
between five and 40 employees; established prior to 2009
andUK-owned)fortheyeartoMarch2011weremarginally
negative(i.e.,-1.3%).Averageturnovergrowthratesforthis
group of UK small businesses were also negative in this period
(i.e.,-9%).
Employment growth rateAverage net employment growth of
participants23%vs.-1%forUKsmall
businesses. 12
PARTICIPANTS UK SMALL BUSINESSES
-1%
23%
Revenue growth rateAverage growth rate of participant revenues
16%vs.-9%forUKsmallbusinesses. 12
PARTICIPANTS UK SMALL BUSINESSES
-9%
16%
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 21
DESIGN IMPACT LEARNINGCONTEXT
12 ONS BSD, 2010-11.
Early evidence suggests that this growth trajectory continues well beyond participants’
involvement in the core part of the 10,000 Small Businesses UK programme. For the 55
participants(YorkshireandNorthWestonly)whowerecontactedforthesecondfollow-up
survey around 18 months after they had completed the programme reported that they had
a49%increaseintheirturnovercomparedtotheirbaselineposition.Thistranslatesinto
anincreaseinannualturnoverof18%.Intermsofjobstheyarereportinganincreaseover
baselineof65%todate.
Programme additionality
10,000 Small Businesses UK participants are on a growth trajectory which clearly separates
them from the broader small business population. This is not unexpected given the
competitive selection process involved to participate in the programme. The data reported here
could therefore in theory simply reflect selection bias.
This is unlikely given further data collected in the participant surveys. To help indicate the
extent of the value added by the programme, participants are asked in the surveys whether
they would have achieved these changes in the absence of the 10,000 Small Businesses UK
programme.Inresponsehalf(49%)reportthattheywouldnot
have created new jobs.
The range of significant business and behavioural changes
reported by programme alumni constitute further prima facie
evidence of value added by the programme. By virtue of the
selection process 10,000 Small Businesses UK participants are
relatively sophisticated and, therefore, delivering incremental
value to them, and creating beneficial change in their
businesses, is arguably more difficult than it would be for the
average small business – but the data on behavioural change
clearly suggests that the programme is producing positive
changes in participants’ business practices.
This initial interim assessment of additionality is a positive
outcome given the existing growth trends in these businesses
before they come on the programme and the short time scale since they completed it. Data on
self-reportedadditionalitywillcontinuetobecollectedalthoughtheconstructionofcontrol
groups of similar firms against which to benchmark future growth performance will provide
further insight.
10,000 Small Businesses UK participants are on a growth trajectory which clearly separates them from the broader small business population.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 22
DESIGN IMPACT LEARNINGCONTEXT
New knowledge and best practices
The surveys provide significant evidence that participants
acquire new knowledge and familiarity with best practices
across a range of areas and, critically, that these are being
implemented in their businesses.
For example, the role of sound financial management as an
essential building block for growth is one of the horizontal
themes running throughout the 10,000 Small Businesses UK
programme. There are many occasions when participants,
whether individually or in groups, spend time working in
detail on the financial aspects of their business. This is of
crucial importance as the businesses seek to present capital
providers with a clear proposition of the resources they
require to fund their growth.
Anecdotally, on enrolling many participants report having
maintained a relatively hands off approach to their
businesses’ management data and accounts. The programme
ishavingaclearimpacthere,withoverfour-fifths(81%)of
theparticipantsintheinitialfollow-upsurveyreportingthat
they use financial data to drive business decisions more than
they did before 10,000 Small BusinessesUK.Further,87%of
participantsreportthat,post-programme,theyhaveaclearer
understanding which financial metrics are critical to the
success of their business.
Business confidence and networks
I now feel that I have the confidence to make the decisions and to lead my team and have them share the vision that we have in running the business.”
North West participant
In addition to conveying practically useful knowledge,
it is clear that the programme has significant “softer”
“
92%
83%
81%
43%
64%
52%
INTRODUCED NEW INTERNAL PROCESSES
USING FINANCIAL DATA MORE TO DRIVE BUSINESS DECISIONS
FOUND NEW SUPPLIERS THROUGH THE PROGRAMME
INCREASED TRAINING OPPORTUNITIES FOR STAFF
HAVE IMPROVED QUALITY OF AN EXISTING PRODUCT/SERVICE
MORE CONFIDENT IN THEIR ABILITY TO GROW THEIR BUSINESS
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 23
DESIGN IMPACT LEARNINGCONTEXT
impactssuchasbuildingconfidence.Almostall(92%)participantsreportthattheyarenow
more confident in their ability successfully to grow their business than they were before
participating in 10,000 Small Businesses UK.
This impact on confidence seems to occur through various channels, including through
programme content, but the role of being part of a peer group and the interactions this
enables appear particularly critical. The opportunity to work closely with other entrepreneurs
in a “safe” learning environment, to provide mutual support to others with similar aspirations
andtojoinadedicatedcommunityoflike-minded
entrepreneurs seems to serve to increase confidence, morale
and resilience.
There is clear evidence that the programme is helping to
create these strong entrepreneurial communities. To illustrate
this,two-fifths(43%)oftheparticipantshavefoundnew
suppliersthroughtheprogramme,thesameproportion(41%)
newbusinesspartnersandhalf(51%)newclientsfortheir
businesses. The programme has created a unique peer to peer
marketplace in which participants can offer and purchase
a diverse range of products and services, often at preferred
terms. The embedded trust among 10,000 Small Businesses
community members is providing a robust platform to
conduct, high impact commercial activity.
Strategic change
The surveys provide ample evidence that participation
in the programme is catalysing major strategic change
in participants’ businesses, not least changes relating to
innovation and market expansion which are known to be
two key drivers of small business growth. The scale of strategic change observed in the
participating businesses a short time after their involvement in the programme illustrates its
practical nature and its focus on immediate impacts for participants’ businesses.
Four-fifths(83%)ofparticipantsreportedthattheyhadintroducednewinternalprocessesand
systems as a result of participating in the programme, and a significant number are engaged
in innovative practices:
The opportunity to work closely with other entrepreneurs in a “safe” learning environment, to provide mutual support to others with similar aspirations and to join a dedicated community of like-minded entrepreneurs seems to serve to increase confidence, morale and resilience.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 24
DESIGN IMPACT LEARNINGCONTEXT
13 BIS Small Business Survey (2012) – SME employers only.
14 SME Finance Monitor – Quarter 4 results 2012.
• Almosttwo-thirds(64%)reportedthattheyhadimprovedthequalityofanexistingproduct
or service;
• Overhalf(53%)hadresearchedordevelopedanewproductorservice;and
• Two-fifths(45%)hadlaunchedanewproductorservice.
Atthetimeoftheinitialsurveysoveraquarter(26%)oftheparticipantshadalreadyentered
new regional markets within the UK and a minority had begun trading in international
markets(7%)asadirectresultoftheprogramme.
Hiring, retaining and motivating the best people are critical challenges to growing small
businesses.Justoverhalf(52%)oftheparticipantsreportthattheyhaveactivelyengagedin
training opportunities for their employees and recruited employees to key positions in the
business(64%).
Accessing finance for growth
For many participating businesses, achieving their growth potential will require preparing for
and securing appropriate forms of external capital, and this is a key horizontal theme running
throughout 10,000 Small Businesses UK. A large majority of
participants(84%)agreedthattheprogrammehadenhanced
their understanding of the external finance options available
and71%reportedthattheprogrammehadenhancedtheir
abilitytowinfinance.Oneinfive(20%)participantsreported
that the programme had helped to enhance their business
network by introducing them to new capital providers (both
debtandequityfinance).
Overall7%ofparticipantshadtriedtoobtainexternalequity
finance(angelinvestmentandearlystageventurecapital)
and9%hadtriedfromexistingshareholders.Thiscompares
tothe1-2%ofsmallbusinesses(10-49employees)intheUK
who tried to obtain equity investment from either a business
angel, venture capitalists or from other shareholders in the
last 12 months. 13 Considering only those UK small businesses
whoareplanningtogrowinthenext12monthstheproportionremainsataround1%.From
anotherrecentUKsurveytheproportionofsmallbusinesses(i.e.,10-49employees)seeking
loans/equityfromdirectorswas6%. 14
For many participating businesses, achieving their growth potential will require preparing for and securing appropriate forms of external capital.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 25
DESIGN IMPACT LEARNINGCONTEXT
15 SME Finance Monitor (2012). That is, in the 12 months before they were surveyed in Q4 of 2012, 9% reported a loan/overdraft event, but had not applied for other forms of finance and a further 4% reported both a loan/overdraft event and applying for other forms of external finance.
Overall,7%ofparticipantsreportedthattheyhadreceivedequityinvestmentfromexisting
shareholdersand4%hadnegotiatedinvestmentwithnewshareholders(e.g.,angelsorformal
VC).Morethanhalfoftheparticipantswhohadsoughtexternalequityfinancereportedthat
they had been successful in securing it in the relatively short period between completing the
programme and the initial survey.
Withrespecttodebtfinance29%ofparticipantshadsuccessfullyobtainedabankoverdraft
(includingtherenewalofanexistingfacility)and11%abankloansincetheycompletedthe
programme.AlthoughnotdirectlycomparableUKdatashowsthat13%ofSMEsreporteda
loan/overdraftevent(i.e.,anapplication)intheprevious12months. 15
Apromisingindicatorofparticipants’futuregrowthintentionsisthattwo-thirds(67%)
reported that they will seek finance to grow their business in the next 12 months.
Summary
The 10,000 Small Businesses UK programme was designed to help create employment and
stimulate growth in a range of regional environments across the UK and the evidence
suggests that it is having a significant impact – with participants growing at a rate that is
exceptional in the private sector at the moment and which seems to be driven at least in part
by the programme. Further, it is changing the strategic focus of the businesses which will
build the foundation for even further growth. The data reported here is only the beginning of
the growth story for these businesses.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 26
DESIGN IMPACT LEARNINGCONTEXT
SECTION 4
What We are LearningThe process of developing and delivering the 10,000 Small Businesses UK programme and monitoring its impact on participants is enabling the programme partners to understand how it is creating value on a number of different levels. There are important lessons emerging which we share here as a contribution to the debate about how we can develop a world class small business support environment across the UK.
At the simplest level the programme works by creating space for individual entrepreneurs
to think more strategically about their businesses and this equips them better to grow.
Creating this space is challenging and requires innovative approaches. 10,000 Small Businesses
UK is achieving it by building and nurturing new types of communities and partnerships
whose members bring different skills and experiences, all underpinned by the shared goal
of stimulating small business growth. Some of the most important building blocks that are
enabling these communities to develop and flourish are:
• Anenvironmentinwhichentrepreneurscanshareriskandgrowinconfidence
• Participantdiversity
• Thesharedendeavouroflearning
• Corporate/academicpartnership
• University-leddelivery
• Innovationwithinasharedframework
• Anintegratedprogramme
• Acurriculumadaptedtodifferentlearningstyles
• Participants’changedunderstandingoftheirrolesasbusinessleaders
• Developingpowerfulbusinessnetworks
Entrepreneurial communities
At the heart of 10,000 Small Businesses UK are the small business leaders who participate
in the programme together and who, in the process of doing so, form new entrepreneurial
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 27
DESIGN IMPACT LEARNINGCONTEXT
communities. A key outcome from the programme is how
powerfulandself-sustainingthesecommunitiesareand
the importance of creating the conditions in which they
can evolve.
An environment in which entrepreneurs can share risk and
grow in confidence: Barriers which hinder a small business’s
growth and limit its potential. The programme has shown
thatimprovingtheowner-managers’confidenceintheirown
potential for growth can have a dramatic impact in helping
them to overcome these barriers. Partly this can be achieved
through the programme’s support to give the participants
essential missing knowledge, partly through the process of
developing a rigorous Business Growth Plan. But a crucial
role is also being played by “risk sharing”, on an emotional or
intellectual level, with other entrepreneurs and thinking out
loudtogether,co-creatingideas,andexploringopportunities
in a safe yet stimulating setting.
The best part of the 10,000 Small Businesses programme was the environment and the group that I was working within allowed me to expose my inhibitions, insecurities and it also allowed me to share my skills. It allowed me to do this in an environment where every single other individual was going through exactly the same.”
Yorkshire participant
The programme has highlighted the importance of creating an environment in which this
risk sharing can take place between entrepreneurs. They are naturally well placed to provide
support to one another, but in the normal course of events there are multiple barriers to
entrepreneurs establishing such strong communities of support. The 10,000 Small Businesses
UK model facilitates this process by selecting for particular traits and experience in its
participants, and then providing a robust platform for them to interact and build trust.
The more time and effort spent on developing the right type of strategic space for such
interactions to take place, the better the results for the participants. For example, the
brainstorming sessions within the modules allow the participants to play the role of
“trust-basedcriticalfriend”.Thisallowsadepthofinteractionnotgenerallyfoundinmany
membership-basednetworkorganisations.
“
The inclusion of social enterprises is powerfully complementing all participants’ learning. This raises the question as to why business support efforts targeting social enterprises tend to be ring-fenced from the wider business community of which they are part.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 28
DESIGN IMPACT LEARNINGCONTEXT
Participant diversity: Trust between participants is
encouraged by their diversity. This is partly because cohorts
do not contain participants who are competing with one
another in the same market. But more fundamentally it
means that participants can bring different experiences,
insights and perspectives to one another, while also knowing
they have all been through the same selection process and
share similar objectives for their businesses.
How can a robot business and a cleaning business and a haulage business and a restaurant have similar problems? In fact it turns out almost all the problems in business management that we are facing are common across all of us.”
London participant
A compelling example of this is the inclusion of social entrepreneurs and social enterprises
in every cohort. This is powerfully complementing all participants’ learning and this raises
thequestionastowhybusinesssupporteffortstargetingsocialenterprisestendtobering-
fenced from the wider business community of which they are part. Unique collaborations
andcommercialpartnershipsareformingbetweenthemission-andcommercially-driven
businesses that would not have happened without the platform that 10,000 Small Businesses
UK provides. These collaborations are producing new innovations, business practices, and
most enduringly, changed value sets, particularly for the commercial businesses who are now
recognising the benefits of embedding broader value sets in their business cultures.
We deal with the same issues; we have the same challenges; and we have the same aspirations.”
Midlands participant
Learning communities
The shared endeavour of learning: The shared endeavour around which these communities
formispro-activelearning.Whileallparticipantsintheprogrammearealreadysuccessful
in their own right, they join the programme because they recognise the benefit to them and
totheirgrowingbusinessesfromfurtherlearningandskill-building.Interestingly,someof
the more established businesses describe how they felt they had reached a plateau before
“
“
It is fundamental to the programme’s design that the participants are the true experts in their own fields and that the academics, deliverers and speakers are there, not to lecture, but to facilitate learning.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 29
DESIGN IMPACT LEARNINGCONTEXT
they applied to the programme and even the act of completing the application rekindled their
energy for the next growth spurt.
It is fundamental to the programme’s design that the
participants are the true experts in their own fields and
that the academics, deliverers and speakers are there, not to
lecture, but to facilitate learning. The participants own and
have responsibility for their own learning journeys, prompting
the curriculum, creating demands of their individual business
advisors and defining their needs. Experiences and theories
aresharednon-prescriptivelyanditisforthebusiness
owners themselves to evaluate and decide what is right
for them. From this a relationship between the university
and the participant develops which exists far beyond the
programme and represents a practical partnership model for
true knowledge exchange. This integrated learning model
demonstrates how responsive a single programme can be to
thediverseneedsofmulti-sectorandmulti-stagebusinesses.
Corporate/academic partnership: The partnership between a major corporate and five
leading universities is unusual in the small business support landscape but is proving to
be highly effective. The corporate partner brings a clear focus on the objectives sought
through the programme and the ability to convene other parties, resources and capital
around these objectives. The university partners have each brought their own core strengths
in entrepreneurial education and will gain enduring benefit from working together
collaboratively with other institutions that have complementary strengths. This partnership
model between the corporate and education sector may lend itself to other groupings and
other contexts across the UK.
University-led delivery: The role of the community of universities which leads in the delivery
of the programme is clearly crucial to catalysing these learning communities. As well as being
centres of expertise on business and enterprise, each partner is itself an important player in its
own local and regional business infrastructure. Each partner is uniquely well placed to create
the right balance between academic content and the practical applications of this content in
each business to generate growth, and where appropriate to innovate in response to local and
regional variations in business ecosystems. Maintaining the individual Business Growth Plans
at the core of all parts of the curriculum is resulting in a useful tool that entrepreneurs are
continuing to use and maintain beyond the formal structure of the programme.
This partnership model between the corporate and education sector may lend itself to other groupings and other contexts across the UK.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 30
DESIGN IMPACT LEARNINGCONTEXT
Innovation within a shared framework: A curriculum that allows partners the flexibility
to innovate, effective structures for the transfer of innovations across partners and the
programme’s ability to evolve over time have been critical to the success of the partnership.
Importantly, the Saïd Business School plays a crucial role in ensuring quality of content
and delivery to maintain a consistent 10,000 Small Businesses UK experience across the
regions. The academic consortium meets three times a year to break down and improve the
core curriculum, discuss new innovations and share delivery experiences. The programme
frequentlyengageswithBabsonCollegetodrivecross-Atlanticknowledgeexchangewiththe
10,000 Small Businesses US initiative.
An integrated programme: The curriculum combines sequential modules – in subjects such
as operations, leadership and finance – with horizontal themes and activities that are threaded
throughout the modules. A number of these horizontal strands have proven highly impactful.
One such strand has been the potential value of connecting social and financial value and its
relevance to both commercial and mission driven firms. This is of course reinforced by the
presenceineachcohortofbothmission-andcommercially-drivensmallbusinesses.
A curriculum adapted to different learning styles: Our participants demonstrate
considerable diversity in their preferred learning styles. To satisfy this breadth the modules
that constitute the core programme are consciously structured to vary pace, learning style
and group size through the day. The core programme itself is only one part of participants’
10,000 Small Businesses experience, with other delivery formats including topical workshops,
growthgroupreviews,individualmentoring,businessvisitsandpeer-to-peeractivitythat
both satisfy varied learning styles and reinforce the application of the learning to generate
growth in the individual businesses.
Enduring impact
Participants’ changed understanding of their roles as business leaders: While providing
learning opportunities for individual entrepreneurs and businesses is important, the legacy of
the programme will come from the impact that participants’ experiences on the programme has
on the wider communities and ecosystems within which they operate. We have numerous
instances of participants’ experience on the programme changing how they understand their
role as business leaders. On a very practical level it requires the business owners to learn key
delegationskillsanddevelopleadershipteamsthatcanhandletheday-to-dayactivitiesasthey
focus on long term strategic growth. More fundamentally, in many cases taking time out of their
businesses and working together with other practitioners in the unique environment offered by
the programme has transformed participants’ understanding of their role and their ambitions.
STIMULATING SMALL BUSINESS GROWTH – 10,000 SMALL BUSINESSES UK 31
DESIGN IMPACT LEARNINGCONTEXT
Through doing the programme I identified the opportunity to bring someone else into the business so that I could take more of a back seat and start to look at things more strategically. This is naturally where I wanted to go, and the programme has allowed me to do it.”
Midlands participant
Developing powerful business networks: The core programme which
10,000 Small Businesses UK participants undertake has increasingly come to be regarded as
only the starting point for their journeys. The focus of the university partnership has been
further catalysing the communities of shared endeavour that are created cohort by cohort, and
growing these communities by linking them with one another.
The strength of the bonds formed during the programme
both within and across cohorts has been truely impressive.
Thisbuild-upoftrustandparticipants’respectforone
another manifests itself in many forms, all of which prove
hugely beneficial to the individuals and their businesses. The
richness of experience and the passion for growth which the
entrepreneurs share with each other is transformative for the
aspirations, practices and opportunities of the businesses.
The premise of the further development of the
10,000 Small Businesses UK alumni community is that, given
the value created by bringing 25 to 30 carefully selected
entrepreneurs together in a cohort, the impact from linking
up these individual cohorts regionally and nationally could be
even greater. While this dimension of 10,000 Small Businesses
UK is at a relatively early stage, it provides a significant opportunity to generate a legacy
above and beyond the programme’s immediate impact on job creation and economic growth.
“
The core programme which 10,000 Small Businesses UK participants undertake has increasingly come to be regarded as only the starting point for their journeys.
DESIGN IMPACT LEARNINGCONTEXT
The Business Growth Plan I developed through the 10,000 Small Businesses programme is now our business plan. That’s how we’re going to move forward. We have the numbers behind it. We have the confidence to invest. Here we go.”
Midlands participant
“
This work contains statistical data from ONS which is Crown Copyright. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates.
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